The House and Senate sent to Gov. Brewer a bill to cut Arizona’s capital gain tax.  Brewer is expected to sign the bill this week.

The capital gains tax cut would allow taxpayers a 25% subtraction from how capital gains are currently taxed (as regular wages).  So if you’re in the 4.54% tax bracket, realized capital gains would be taxed at 3.4% rather than 4.54%.

The Arizona Free Enterprise Club for two years has pushed to have capital gains eliminated, but this 25% subtraction is a good first step.